Background on Delta and Aeroméxico
Delta Air Lines and Aeroméxico have maintained an antitrust immunity agreement since 2016, allowing them to collaborate on pricing and capacity. This partnership has been a significant aspect of their operations between the United States and Mexico.
USDOT’s Concerns
The United States Department of Transportation (USDOT) has expressed concerns over certain airline policies implemented by the Mexican government, which they believe violate the 2015 U.S.-Mexico Air Transport Agreement.
- Prohibition of Cargo Operations: The USDOT criticized the Mexican government for restricting cargo operations at the International Airport of Mexico City (AICM) and reducing overall flight operations, effectively “confiscating” slots from U.S. airlines.
- Unfair Advantage: These policies, according to the USDOT, have given Delta and Aeroméxico an unfair advantage as dominant competitors, causing real and potential harm to interested parties, including consumers.
USDOT’s Decision and Implications
As a result of these concerns, the USDOT decided to revoke the antitrust immunity for Delta and Aeroméxico starting January 1, 2026.
The joint venture must dissolve by this date, ending activities such as price fixing, capacity management, and revenue sharing that require antitrust immunity.
However, Delta and Aeroméxico can continue collaborating through competitive activities like code-sharing, marketing partnerships, and frequent flyer program cooperation.
Additionally, Delta can retain its stake in Aeroméxico, and both airlines can maintain their current flight operations without restrictions in the U.S.-Mexico market.
USDOT’s Criticism of Mexican Government
The USDOT has accused the Mexican government of failing to address its non-compliance with the 2015 U.S.-Mexico Air Transport Agreement.
“México has not taken meaningful steps to remedy its non-compliance with the U.S.-Mexico Air Transport Agreement of 2015, which unfairly benefits Delta and Aeroméxico by allowing them to operate a pricing and capacity joint venture with conditional USDOT approval,” said the USDOT in a statement.
The USDOT emphasized that antitrust immunity for joint business arrangements is an “extraordinary authority,” not a right, and only supported when foreign countries respect fairness, free market principles, and competition.
Key Questions and Answers
- What is the USDOT’s decision? The USDOT has decided to revoke the antitrust immunity for Delta and Aeroméxico, effective January 1, 2026.
- What activities will be affected? The joint venture must discontinue competitively sensitive activities, such as common pricing, capacity management, and revenue sharing requiring antitrust immunity.
- What collaborative activities can continue? Delta and Aeroméxico can still collaborate through competitive activities like code-sharing, marketing partnerships, and frequent flyer program cooperation.
- What will happen to Delta’s stake in Aeroméxico? Delta can retain its participation in Aeroméxico.
- Will current flight operations be affected? Both airlines can maintain their current flight operations in the U.S.-Mexico market without restrictions.
